Chamber Blog
~ July 2016

Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at the numbers behind the rhetoric on trade. The overarching theme at last week’s Republican convention was one of anger at an economy that is supposedly “not working.” Donald Trump’s biggest applause even came when he slammed trade and immigration.

Ottawa, July 22, 2016—The Canadian Chamber of Commerce reacts with cautious optimism to the announcement that Canada’s Premiers have reached an agreement in principle on internal trade. It is expected that the Canadian Free Trade Agreement, once implemented, will allow for freer trade within Canada and contribute to eliminating regulatory barriers between provinces and territories. This has been a long-standing demand of the Canadian Chamber, outlined most recently in the Top 10 Barriers to Competitiveness for 2016.

Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at the reasons and effects of soaring housing prices, as well as the very real possibility that the bubble will burst in our faces.

The Canadian Chamber of Commerce applauds the announcement that Canada’s provinces, territories and the federal government have reached an new agreement on internal trade, that once implemented will allow for freer trade within Canada and start to eliminate regulatory barriers between provinces and territories. This has been a long-standing position of the Canadian Chamber, outlined most recently in the Top 10 Barriers to Competitiveness for 2016.

“This new agreement is great news for business, and it has the potential to significantly enhance business competitiveness in Canada, depending on the exact measures it contains. Canada already has to struggle against other players on a global stage. We don’t need to be competing amongst ourselves as well,” explained the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “We’re very happy that the provinces’ listened to our recommendations to reduce these barriers, but today’s agreement is only the first step,” he continued.

The new agreement introduces significant changes to ensure that Canadian businesses and consumers will benefit from greater market access, competitive prices and fair treatment across all provinces and territories.

As we watch the Brexit turmoil in Europe, Canadians might be tempted to feel pretty good about the economic and political stability here. However, Europe has managed to accomplish something we still haven’t figured out in Canada – developing a single economic market.

The greatest benefit of European Union membership is access to the single economic market comprised of all 28 member nations, which allows for the free movement of goods, capital and services between countries. Even those who led the victorious ‘leave’ campaign in the United Kingdom say they would like to maintain this privileged economic access to the European market.

Yet, over here, Canada remains a collection of 13 regional markets separated by a myriad of competing rules and standards that weakens economic growth by increasing costs and limiting choice for consumers, business and governments. It is astonishing that 28 independent countries can collectively lower the economic barriers between them while Canada has been unable to do so between 13 provinces and territories.

What’s even more astonishing is that Canada’s carefully-nurtured, archaic internal barriers will make it easier for foreign companies to do business in Canada than it is for Canadian companies. For example, once the Comprehensive Economic and Trade Agreement (CETA) with the EU is ratified, European companies could have better access to provincial procurements in Alberta than companies in other provinces would. And, because other jurisdictions may retaliate by blocking Alberta businesses, everyone loses. That’s what happens when governments forbid free and open competition: less choice.

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